Breakout – Long – Against The Trend

Criteria

1. Downward Trend (more extended / more pull backs – possible MACD Divergence)
2. Price makes higher low (could be a double bottom*)
3. Price to break and close above the trend line and 50 MA (might take several candles)
4. Place BUY order (Buy above step 3 candle high)
5. If lowest low is at the same level as a previous low (line of support)*

 

1. Pull back up
2. Below 50 MA
3. Zone – Pulling back to (2 out of 3):
   1. The trend line
   2. The previous resistance line
   3. The 21 MA
4. One of the four candle patterns:
   1. Doji
   2. Spinning Top
   3. Shooting Star
   4. Bearish Engulfing
5. Buy at the high on the next candle

 

*Element of discretion